Exploring factors influencing the digital economy: uncovering the relationship structure to improve sustainability in China
Abstract
Digital economy is a great route to promote the efficient utilization of natural resources and promote sustainability due to its high-tech, rapid growth, extensive penetration, deep integration and other characteristics. Existing study on the influencing factors of the digital economy is not deep enough and lacks the analysis on the relationship structure of factors influencing the digital economy, which is not conducive for an overall grasp of the digital economy. To correctly understand how to better develop the digital economy, this paper studies its influencing factors and the relationships between them. Based on the time-series data of China from 2002 to 2018, grey correlation analysis was applied to calculate the correlation between these influencing factors and the digital economy, and determine the major influencing factors of digital economy development in China. The Granger causality test and a review of existing research were used to judge the interrelationship of various factors. The interpretative structure model was utilized to determine the relationship structure of the main factors affecting the development of China’s digital economy. The results show that the number of digital talents, state of the technology market, and degree of digitalization are direct influencing factors of the digital economy. The results help to better understand the development of the digital economy and will enable the implementation of policies to improve towards more sustainable cities.
Keyword : digital economy, influence factors, relationship structure, sustainability
How to Cite
Wang, J., Zhang, J., Cifuentes-Faura, J., Crenguta Ileana, S., & Zhao, X. (2024). Exploring factors influencing the digital economy: uncovering the relationship structure to improve sustainability in China. Technological and Economic Development of Economy, 30(2), 441–463. https://doi.org/10.3846/tede.2024.20600
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Alam, K. (2012). Productivity, national broadband network and digital economy: Challenges for Australia. Bangladesh Statistical Association.
Ali, M. A., Hoque, M. R., & Alam, K. (2018). An empirical investigation of the relationship between e-government development and the digital economy: The case of Asian countries. Journal of Knowledge Management, 22(5), 1176–1200. https://doi.org/10.1108/JKM-10-2017-0477
Attri, R., Grover, S., Dev, N., & Kumar, D. (2013). An ISM approach for modelling the enablers in the implementation of Total Productive Maintenance (TPM). International Journal System Assurance Engineering and Management, 4(4), 313–326. https://doi.org/10.1007/s13198-012-0088-7
Beilock, R., & Dimitrova, D. V. (2003). An exploratory model of inter-country Internet diffusion. Telecommunications Policy, 27(3–4), 237–252. https://doi.org/10.1016/S0308-5961(02)00100-3
Billon, M., Crespo, J., & Lera-López, F. (2017). Internet, educational disparities, and economic growth: Differences between low-middle and high-income countries. In H. Kaur, E. Lechman, & A. Marszk (Eds.), Catalyzing development through ICT adoption (pp. 51–68). Springer, Cham. https://doi.org/10.1007/978-3-319-56523-1_5
Cai, S., Gu, C., & Zhang, Z. (2022). Research on temporal and spatial characteristics and influencing factors of China’s provincial digital economy. East China Economic Management, 36(7), 1–9 (in Chinese).
Chen, S., Li, Q., Lei, B., & Wang, N. (2021). Configurational analysis of the driving paths of Chinese digital economy based on the Technology–Organization–Environment framework. SAGE Open, 11(4), 1–11. https://doi.org/10.1177/21582440211054500
China Academy of Information and Communications Technology. (2015). 2015 Research Report on China’s Information Economy. CAICT. http://www.caict.ac.cn/kxyj/qwfb/bps/201804/t20180426_158204.htm
China Academy of Information and Communications Technology. (2016). White Paper on the Development of China’s Information Economy 2016. http://www.caict.ac.cn/kxyj/qwfb/bps/201804/t20180426_158344.htm
China Academy of Information and Communications Technology. (2017). White Paper on the Development of China’s Digital Economy 2017. http://www.caict.ac.cn/kxyj/qwfb/bps/201804/t20180426_158452.htm
China Academy of Information and Communications Technology. (2018). White Paper on the Development and Employment of China’s Digital Economy 2018. http://www.caict.ac.cn/kxyj/qwfb/bps/201904/t20190416_197842.htm
China Academy of Information and Communications Technology. (2019). White Paper on the Development and Employment of China’s Digital Economy 2019. http://www.caict.ac.cn/kxyj/qwfb/bps/201904/t20190417_197904.htm
China Academy of Information and Communications Technology. (2022a). Report on the Development of China’s Digital Economy 2022. http://www.caict.ac.cn/english/research/whitepapers/202208/t20220819_407677.html
China Academy of Information and Communications Technology. (2022b). White Paper on Global Digital Economy 2022. http://www.caict.ac.cn/english/research/whitepapers/202303/t20230316_416850.html
Chinn, M. D., & Fairlie, R. W. (2007). The determinants of the global digital divide: A cross-country analysis of computer and internet penetration. Oxford Economic Papers, 59(1), 16–44. https://doi.org/10.1093/oep/gpl024
Cui, L., Hou, Y., Liu, Y., & Zhang, L. (2021). Text mining to explore the influencing factors of sharing economy driven digital platforms to promote social and economic development. Information Technology for Development, 27(4), 779–801. https://doi.org/10.1080/02681102.2020.1815636
Dai, D., Fan, Y., Wang, G., & Xie, J. (2022). Digital economy, R&D investment, and regional green innovation – Analysis based on provincial panel data in China. Sustainability, 14(11), Article 6508. https://doi.org/10.3390/su14116508
Domazet, I., & Lazić, M. (2017). Information and communication technologies as a driver of the digital economy. In 22nd International Scientific Conference: Strategic Management and Decision Support Systems in Strategic Management (pp. 11–19). Subotica.
Duan, H., & Pang, X. (2021). A multivariate grey prediction model based on energy logistic equation and its application in energy prediction in China. Energy, 229(2), Article 120716. https://doi.org/10.1016/j.energy.2021.120716
Forenbacher, I., Husnjak, S., Cvitić, I., & Jovović, I. (2019). Determinants of mobile phone ownership in Nigeria. Telecommunications Policy, 43(7), Article 101812. https://doi.org/10.1016/j.telpol.2019.03.001
Gazzola, P., Grechi, D., Papagiannis, F., & Marrapodi, C. (2021). The sharing economy in a digital society: Youth consumer behavior in Italy. Kybernetes, 50(1), 147–164. https://doi.org/10.1108/K-12-2019-0796
He, J., Lai, S., & Liao, X. (2015). An empirical analysis on the determinants of Internet industry development. Management Review, 27(1), 138–147 (in Chinese).
Jha, A., & Saha, D. (2020). Forecasting and analysing the characteristics of 3G and 4G mobile broadband diffusion in India: A comparative evaluation of Bass, Norton-Bass, Gompertz, and logistic growth models. Technological Forecasting and Social Change, 152, Article 119885. https://doi.org/10.1016/j.techfore.2019.119885
Karintseva, O. I., Melnyk, L. H., Kubatko, O. V., Dehtyarova, I. B., & Derykolenko, A. O. (2019). Disruptive technologies for the transition of digital economies towards sustainability, Economic Annals-XXI, 179(9–10), 22–30. https://doi.org/10.21003/ea.V179-02
Kiiski, S., & Pohjola, M. (2002). Cross-country diffusion of the Internet. Information Economics and Policy, 14(2), 297–310. https://doi.org/10.1016/S0167-6245(01)00071-3
Lechman, E., & Popowska, M. (2022). Overcoming gender bias in the digital economy. Empirical evidence for European countries. Gender, Technology and Development, 26(3), 404–436. https://doi.org/10.1080/09718524.2022.2127064
Li, L. (2013). A research on the determinants of Internet diffusion in China based on the partial least square method. Journal of Statistics and Information, 28(7), 43–48 (in Chinese).
National Bureau of Statistics of China. (2003–2019). China Statistical Yearbook. https://data.stats.gov.cn/publish.htm?sort=1
Nie, W., & Duan, H. (2023). A novel multivariable grey differential dynamic prediction model with new structures and its application to carbon emissions. Engineering Applications of Artificial Intelligence, 122, Article 106174. https://doi.org/10.1016/j.engappai.2023.106174
Oyeyinka, B. O., & Lal, K. (2005). Internet diffusion in sub-Saharan Africa: A cross-country analysis. Telecommunications Policy, 29(7), 507–527. https://doi.org/10.1016/j.telpol.2005.05.002
Peña, D. N., Ruiz, V. R. L., & Navarro, J. L. A. (2020). An analysis of the key role of human and technological development in the smart specialization of smart European regions. Information Technology for Development, 26(4), 728–741. https://doi.org/10.1080/02681102.2019.1704675
Pouri, M. J., & Hilty, L. M. (2018). Conceptualizing the digital sharing economy in the context of sustainability. Sustainability, 10(12), Article 4453. https://doi.org/10.3390/su10124453
Quiban, J. B. (2021). Rate of internet diffusion among ASEAN countries using bass model. International Journal of Applied Science and Engineering, 18(4), 1–9. https://doi.org/10.6703/IJASE.202106_18(4).002
Sansa, N. A. (2019). Analysis of the influence of the China industrial policies to the digital economy. Electronic Research Journal of Social Sciences and Humanities, 1(I), 71–83. https://doi.org/10.2139/ssrn.3567910
Shen, G. X., Sun, S. G., Zhang, Y. Z., Wang, Z. Q., Chen, B. K., & Ma, C. (2014). System failure analysis based on DEMATEL-ISM and FMECA. Journal of Central South University, 21, 4518–4525. https://doi.org/10.1007/s11771-014-2456-8
Sturgeon, T. J. (2019). Upgrading strategies for the digital economy. Global Strategy Journal, 11(1), 34–57. https://doi.org/10.1002/gsj.1364
Sukhodolov, A. P., Slobodnyak, I. A., & Marenko, M. V. A. (2019). Factor model for assessing the state of the digital economy. Journal of New Economy, 20(1), 13–24. https://doi.org/10.29141/2073-1019-2019-20-1-2
Szeles, M. R., & Simionescu, M. (2020). Regional patterns and drivers of the EU digital economy. Social Indicators Research, 150, 95–119. https://doi.org/10.1007/s11205-020-02287-x
Tian, X., Zhang, Y., & Qu, G. (2022). The Impact of digital economy on the efficiency of green financial investment in China’s provinces. International Journal of Environmental Research and Public Health, 19(14), Article 8884. https://doi.org/10.3390/ijerph19148884
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vicente, M. R., & López, A. J. (2008). Some empirical evidence on Internet diffusion in the New Member States and Candidate Countries of the European Union. Applied Economics Letters, 15(13), 1015–1018. https://doi.org/10.1080/13504850600972352
Wang, Z. (2021). Research on digital economy and human resources based on fuzzy clustering and edge computing. Security and Communication Networks, 2021(12), 1–8. https://doi.org/10.1155/2021/5583967
Xiao, Q., Gao, M., Chen, L., & Jiang, J. (2023). Dynamic multi-attribute evaluation of digital economy development in China: A perspective from interaction effect. Technological and Economic Development of Economy, 29(6), 1728–1752. https://doi.org/10.3846/tede.2023.20258
Yin, Z., & Barucca, P. (2022). Deep recurrent modelling of Granger causality with latent confounding. Expert Systems with Application, 207, Article 118036. https://doi.org/10.1016/j.eswa.2022.118036
Yoon, S. C. (2018). Servicization with skill premium in the digital economy. Journal of Korea Trade, 22(1), 17–35. https://doi.org/10.1108/JKT-10-2017-0094
Yu, C., Yang, G., & Du, M. (2021). Industrial policy and technological innovation of China’s digital economy industries. Statistical Research, 38(1), 51–64 (in Chinese).
Zhang, L., & Chen, S. (2019). China’s digital economy: Opportunities and risks (IMF Working Papers 19/16). International Monetary Fund. https://doi.org/10.5089/9781484389706.001
Zhang, S., Wu, Z., Lu, Z., & Zhang, N. (2022). Spatio-temporal evolution characteristics and driving factors of the integration between digital economy and real economy in China. Economic Geography, 42(7), 22–32 (in Chinese).
Zhao, F., Wallis, J., & Singh, M. (2015). E-government development and the digital economy: A reciprocal relationship. Internet Research: Electronic Networking Applications and Policy, 25(5), 734–766. https://doi.org/10.1108/IntR-02-2014-0055
Zhao, H., Kim, S., Suh, T., & Du, J. (2007). Social institutional explanations of global Internet diffusion: A cross-country analysis. Journal of Global Information Management, 15(2), 28–55. https://doi.org/10.4018/jgim.2007040102
Zhu, Q., Wu, J., Li, X., & Xiong, B. (2017). China’s regional natural resource allocation and utilization: A DEA-based approach in a big data environment. Journal of Cleaner Production, 142(Part 2), 809–818. https://doi.org/10.1016/j.jclepro.2016.02.100
Zhu, W., & Chen, J. (2022). The spatial analysis of digital economy and urban development: A case study in Hangzhou, China. Cities, 123, Article 103563. https://doi.org/10.1016/j.cities.2022.103563